DeFi exchange Uniswap launches UNI Governance token
Popular decentralized exchange Uniswap has unveiled its governance token, UNI. The UNI token is already listed on Binance and Coinbase Pro. The ERC 20 token trades for around $3 and all platform users can receive 400 UNI for free if they used Uniswap before September 1.
Uniswap finally equips itself with a governance token
As a major player in Decentralized Finance (DeFi), Uniswap is now positioned for community-led growth, development and empowerment with the launch of UNI. An ERC 20 token that allows users to have a say in the future of the protocol.
According to a press release from Uniswap the platform decided that the introduction of a governance token would help the protocol in developing a larger ecosystem.
We’re thrilled to announce that UNI, the Uniswap Protocol governance token, is live now on Ethereum mainet!— Uniswap Protocol ? (@UniswapProtocol) September 17, 2020
Ethereum Address: 0x1f9840a85d5af5bf1d1762f925bdaddc4201f984
In addition, Uniswap team members will not directly participate in the governance, although they may delegate votes. It is widely believed that the launch of the UNI token is a direct response to the SushiSwap clone and SUSHI token.
There is a competition between the two protocols over which can attract the most liquidity, with SushiSwap managing to liquidate more than $830 million once locked in Uniswap
How will UNI be distributed?
Uniswap further revealed that 1 billion UNI tokens have been mined and will be distributed over a period of four years. The percentage to be allocated are as follows:
- 60.00% to Uniswap community members
- 21.51% to team members and future employees with a 4-year restrictive covenant
- 17.80% to investors with a 4-year restrictive covenant
- 0.69% to advisors with a 4-year restrictive covenant
Note that from the 5th year, an annual inflation rate of 2% will be applied.
15% of the total supply has already been distributed to former users, ie 150,000,000 UNI. Thus, if you have already used Uniswap (before September 1, 2020), you can collect 400 UNI in the form of an airdrop by going to the platform.
For starters, UNI is available through four liquidity pools, USDT, USDC, wBTC, and DAI. Outside of Uniswap, the UNI token is already available on the Binance and Coinbase Pro platform, and is trading at the time of writing for around $2.94.
By selling your 400 UNIs directly, you can therefore get a little more than 1000 USD, depending on the price of the UNI token at the time of your sale. At the time of writing these lines, 400 UNI corresponds to 1100 dollars.